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Arovella Therapeutics Limited (AU:ALA)
ASX:ALA

Arovella Therapeutics Limited (ALA) AI Stock Analysis

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AU:ALA

Arovella Therapeutics Limited

(Sydney:ALA)

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Neutral 44 (OpenAI - 5.2)
Rating:44Neutral
Price Target:
AU$0.07
▼(-7.50% Downside)
The score is primarily held down by weak financial performance (ongoing losses and cash burn) and a technically weak price trend below major moving averages. Limited valuation support (negative P/E and no dividend yield provided) further constrains the score, partially offset by a low-debt balance sheet and higher equity base.
Positive Factors
Regulatory Advancement
Securing FDA approval for trials marks a transition to a clinical-stage biotech, enhancing its competitive position in immunotherapy.
Strategic Partnerships
Collaboration with Baylor College strengthens Arovella's CAR-iNKT platform, potentially improving its product offerings and market reach.
Balance Sheet Strength
A low-debt balance sheet reduces financial risk, providing stability and flexibility to support ongoing R&D activities.
Negative Factors
Cash Flow Challenges
Negative cash flow indicates reliance on external funding, posing risks to sustainability if capital markets tighten.
Ongoing Losses
Persistent losses highlight operational challenges, necessitating successful product development to achieve profitability.
Revenue Volatility
Volatile revenue streams increase dependency on funding and highlight the need for stable product commercialization.

Arovella Therapeutics Limited (ALA) vs. iShares MSCI Australia ETF (EWA)

Arovella Therapeutics Limited Business Overview & Revenue Model

Company DescriptionArovella Therapeutics Limited, a biotechnology company, focuses on the development of therapies for the treatment of cancer and conditions that affect the central nervous system in Australia and internationally. Its product pipeline includes ZolpiMist, an oral spray of zolpidem tartrate to treat short-term insomnia, which is marketed under the brand name of Ambien or Stilnox; invariant natural killer T (iNKT), a cell therapy platform to treat blood cancer; OroMist, an oro-mucosal technology that delivers a range of drug classes through the cheeks, gums, tongue, or floor of the mouth; and Anagrelide to treat cancer. The company also develops oral sprays to treat migraine headaches, motion sickness, and drug-resistant epilepsy. It has a collaborative research agreement with Imperial College London. The company was formerly known as Suda Pharmaceuticals Ltd and changed its name to Arovella Therapeutics Limited in October 2021. Arovella Therapeutics Limited was incorporated in 1999 and is headquartered in Osborne Park, Australia.
How the Company Makes MoneyArovella Therapeutics Limited generates revenue primarily through the development and commercialization of its therapeutic products. The company collaborates with pharmaceutical companies to license its drug delivery technology and therapeutic candidates, earning milestone payments and royalties. Additionally, Arovella may receive government grants or research funding to support its development programs. Strategic partnerships and collaborations with other biotech firms contribute significantly to its revenue streams by sharing resources and expertise.

Arovella Therapeutics Limited Financial Statement Overview

Summary
Arovella Therapeutics Limited shows potential growth in revenue but struggles with profitability and cash flow management. The company exhibits a strong balance sheet with no debt, which is a positive sign of financial health. However, it needs to address operational inefficiencies and improve its cash flow generation to ensure long-term sustainability.
Income Statement
12
Very Negative
The income statement reveals weak financial performance with consistent net losses over the periods analyzed. The company has experienced significant revenue growth in the TTM, but it remains unprofitable with negative EBIT and EBITDA margins. The net profit margin is also negative, indicating inefficiencies in managing costs relative to revenue.
Balance Sheet
66
Positive
The balance sheet shows a strong equity position with zero debt, leading to a favorable debt-to-equity ratio. However, the return on equity is negative due to ongoing net losses, and the equity ratio indicates a high proportion of equity financing. The company has a stable asset base but needs to improve profitability to strengthen its financial stability.
Cash Flow
22
Negative
Cash flow analysis indicates negative free cash flow, reflecting cash outflows exceeding cash inflows from operations. The company has a high operating cash flow to net income ratio, suggesting inefficiencies in converting revenues to cash. However, strong financing cash flows have supported cash reserves, which could indicate reliance on external funding.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue136.00K136.00K17.00K405.90K295.81K257.35K
Gross Profit136.00K136.00K-25.98K-3.00M88.75K34.60K
EBITDA-18.92M-11.10M-10.63M-10.37M-7.87M-4.99M
Net Income-7.51M-7.51M-8.75M-10.18M-8.62M-5.05M
Balance Sheet
Total Assets21.60M21.60M13.28M5.47M9.21M10.69M
Cash, Cash Equivalents and Short-Term Investments20.88M20.88M12.71M5.18M6.07M6.72M
Total Debt0.000.000.00144.80K144.80K79.23K
Total Liabilities1.52M1.52M2.06M1.69M1.60M1.71M
Stockholders Equity20.08M20.08M11.23M3.78M7.62M8.98M
Cash Flow
Free Cash Flow-7.34M-7.34M-7.04M-6.40M-6.83M-4.06M
Operating Cash Flow-6.93M-6.93M-6.91M-6.40M-6.27M-3.54M
Investing Cash Flow-432.11K-432.11K-179.34K95.42K-566.00K-514.55K
Financing Cash Flow15.52M15.52M14.61M5.41M6.19M9.80M

Arovella Therapeutics Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.08
Price Trends
50DMA
0.08
Positive
100DMA
0.09
Positive
200DMA
0.09
Positive
Market Momentum
MACD
<0.01
Negative
RSI
77.55
Negative
STOCH
66.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AU:ALA, the sentiment is Positive. The current price of 0.08 is below the 20-day moving average (MA) of 0.08, below the 50-day MA of 0.08, and below the 200-day MA of 0.09, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 77.55 is Negative, neither overbought nor oversold. The STOCH value of 66.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for AU:ALA.

Arovella Therapeutics Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
70
Outperform
AU$85.15M12.4127.24%2.81%0.65%-9.90%
55
Neutral
AU$137.60M-12.83-71.87%7.65%-19.13%
52
Neutral
AU$79.53M-7.46-27.39%26.64%
52
Neutral
AU$199.54M-7.820.66%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
44
Neutral
AU$106.91M-12.94-47.98%700.00%26.88%
41
Neutral
AU$92.44M-5.26-42.68%63.46%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:ALA
Arovella Therapeutics Limited
0.09
-0.10
-52.43%
AU:ATX
Amplia Therapeutics
0.15
0.06
72.41%
AU:ATH
Alterity Therapeutics
0.01
>-0.01
-44.44%
AU:PIQ
Proteomics International Laboratories Ltd.
0.78
0.10
15.67%
AU:EZZ
EZZ Life Science Holdings Ltd.
1.73
-0.65
-27.28%
AU:RCE
Recce Pharmaceuticals Ltd.
0.71
0.23
48.42%

Arovella Therapeutics Limited Corporate Events

Arovella to Release 936,303 Escrowed Shares Issued for Investor Relations Services
Jan 14, 2026

Arovella Therapeutics has announced that 936,303 ordinary shares, issued on 4 August 2025 as non-cash consideration for investor relations services, will be released from voluntary escrow on 31 January 2026. The move modestly increases the company’s freely tradable share float, potentially enhancing liquidity in its stock while reflecting the use of equity-based payments to support its investor engagement activities.

The most recent analyst rating on (AU:ALA) stock is a Hold with a A$0.10 price target. To see the full list of analyst forecasts on Arovella Therapeutics Limited stock, see the AU:ALA Stock Forecast page.

Arovella Seeks FDA Green Light for First-in-Human Trial of Lead CAR-iNKT Therapy
Dec 30, 2025

Arovella Therapeutics has submitted an Investigational New Drug application to the U.S. Food and Drug Administration for its lead allogeneic CAR-iNKT cell therapy candidate, ALA-101, targeting CD19-positive non-Hodgkin’s lymphoma and leukaemias. Clearance of the application would enable the company to launch a first-in-human Phase 1 trial in relapsed or refractory CD19-positive blood cancers, with trial sites planned in both Australia and the United States under a more efficient regulatory pathway, marking Arovella’s transition toward becoming a clinical-stage biotech and potentially strengthening its position in the competitive cell therapy market.

Arovella Therapeutics Issues New Shares to Bolster Cancer Therapy Development
Dec 8, 2025

Arovella Therapeutics Limited has issued 371,187 ordinary shares without disclosure under the Corporations Act, complying with relevant legal provisions. This move is part of the company’s strategic efforts to strengthen its financial position and support its ongoing development of innovative cancer therapies, potentially enhancing its market presence and stakeholder value.

Arovella Therapeutics Expands Market Presence with New Securities Quotation
Dec 8, 2025

Arovella Therapeutics Limited has announced the quotation of 371,187 ordinary fully paid securities on the Australian Securities Exchange (ASX) as part of an employee incentive scheme. This move is likely to enhance the company’s market presence and incentivize its workforce, potentially impacting its operational dynamics and stakeholder interests positively.

Arovella Therapeutics Director Adjusts Shareholding
Nov 24, 2025

Arovella Therapeutics Limited has announced a change in the director’s interest, with Elizabeth Stoner exercising options to acquire additional ordinary shares. This adjustment reflects a strategic move within the company’s leadership, potentially impacting its market positioning and signaling confidence in the company’s future prospects.

Arovella Therapeutics Expands Share Issuance to Bolster Cancer Therapy Development
Nov 24, 2025

Arovella Therapeutics Limited has issued 1,157,647 ordinary shares without disclosure under specific sections of the Corporations Act, complying with all necessary legal provisions. This issuance supports the company’s ongoing efforts to enhance its position in the biotechnology sector, particularly in developing innovative cancer therapies. The move reflects Arovella’s strategic focus on expanding its therapeutic offerings and strengthening its market presence.

Arovella Therapeutics Announces Cessation of Securities
Nov 24, 2025

Arovella Therapeutics Limited announced the cessation of 1,242,353 securities due to the expiry of options or other convertible securities without exercise or conversion. This development may impact the company’s capital structure and could influence investor perceptions regarding its financial strategy and future growth prospects.

Arovella Therapeutics Expands Market Presence with New Securities Quotation
Nov 24, 2025

Arovella Therapeutics Limited has announced the quotation of 1,157,647 fully paid ordinary securities on the Australian Securities Exchange (ASX). This move follows the exercise of options or conversion of other convertible securities, potentially enhancing the company’s financial standing and market presence.

Arovella Therapeutics Announces Investor Presentation Update
Nov 18, 2025

Arovella Therapeutics Ltd has announced an investor presentation update, which will be shared during non-deal investor meetings in Sydney, Melbourne, Hong Kong, and Singapore. This presentation aims to inform stakeholders about the company’s progress and strategic direction, potentially impacting its market positioning and investor relations.

Arovella Therapeutics Announces Director’s Change in Securities Holdings
Nov 12, 2025

Arovella Therapeutics Limited announced a change in the director’s interest, with Debora Barton exercising options to acquire 1,013,333 ordinary shares while disposing of 1,386,667 unlisted options. This transaction, executed via a cashless exercise facility, reflects an adjustment in the director’s securities holdings, potentially impacting the company’s governance and shareholder dynamics.

Arovella Therapeutics Issues New Shares to Bolster Cancer Therapy Development
Nov 12, 2025

Arovella Therapeutics Limited has issued 1,013,333 ordinary shares without disclosure under Part 6D.2 of the Corporations Act, complying with all relevant provisions. This move reflects the company’s strategic efforts to strengthen its financial position and support its ongoing development of innovative cancer therapies, potentially enhancing its market presence and stakeholder value.

Arovella Therapeutics Announces Cessation of Securities
Nov 12, 2025

Arovella Therapeutics Limited announced the cessation of 1,386,667 securities due to the expiry of options or other convertible securities without exercise or conversion as of November 12, 2025. This announcement may impact the company’s capital structure and could influence investor perceptions regarding the company’s financial strategies and future growth potential.

Arovella Therapeutics Announces Quotation of New Securities on ASX
Nov 12, 2025

Arovella Therapeutics Limited announced the quotation of 1,013,333 fully paid ordinary securities on the Australian Securities Exchange (ASX). This move is part of the company’s strategy to strengthen its financial position and support its ongoing development projects, potentially enhancing its market presence and providing value to its stakeholders.

Arovella Therapeutics Appoints New Director with No Initial Securities Interest
Nov 12, 2025

Arovella Therapeutics Limited has announced the appointment of Andrew Nash as a director, effective from November 12, 2025. The initial director’s interest notice reveals that Andrew Nash currently holds no relevant interests in securities or contracts related to the company. This announcement is a procedural update required under listing rules, and it provides transparency to stakeholders about the director’s financial interests, ensuring compliance with corporate governance standards.

Arovella Therapeutics Advances CAR-iNKT Cell Platform with Baylor College Collaboration
Nov 5, 2025

Arovella Therapeutics Ltd has exercised its exclusive option with Baylor College of Medicine to negotiate a definitive license agreement for chimeric antigen receptor (CAR) and iNKT cell platform intellectual property. This move positions Arovella to enhance its CAR-iNKT cell products, targeting neuroblastoma and liver cancer, with promising early-stage clinical trial results, potentially impacting its industry positioning and stakeholder interests.

Arovella Therapeutics Secures Shareholder Support at AGM
Oct 30, 2025

Arovella Therapeutics announced that all resolutions at their Annual General Meeting were passed by poll. This includes key decisions such as the adoption of the remuneration report, election of a director, and approvals for share issues and placement capacity, indicating strong shareholder support and strategic alignment for future growth.

Arovella Therapeutics Highlights Progress at Annual General Meeting
Oct 30, 2025

Arovella Therapeutics Ltd held its Annual General Meeting virtually, where the Interim Chair and CEO presented updates on the company’s progress. The meeting highlighted Arovella’s commitment to advancing its iNKT cell therapy platform and expanding its treatment capabilities for both blood cancers and solid tumors, positioning the company as a significant player in the biotechnology industry.

Arovella Therapeutics Advances Clinical Trials and Expands Cancer Research
Oct 30, 2025

Arovella Therapeutics Limited has made significant progress in the first quarter of FY26, with $21.9 million in cash reserves to support its clinical and research activities. The company is preparing an Investigational New Drug (IND) application for its lead product, ALA-101, and has held a successful meeting with the FDA to de-risk the application process. Arovella is also planning a phase 1 clinical trial for ALA-101 targeting CD19-positive non-Hodgkin’s lymphoma and leukemia, with the trial expected to commence in early CY26. Additionally, Arovella’s research on its ALA-105 program has demonstrated potent activity against pancreatic cancer cells, highlighting the company’s potential impact on the treatment of aggressive cancers.

Arovella Therapeutics Advances ALA-101 Clinical Program with SAPRO Partnership
Oct 29, 2025

Arovella Therapeutics has appointed SAPRO as its contract research organization for the phase 1 clinical trial of ALA-101, a cell therapy targeting CD19-positive non-Hodgkin’s lymphoma and leukemia. The trial, set to begin in early 2026, will assess the safety and efficacy of ALA-101 and is a significant step in advancing Australian-led immunotherapy development, potentially impacting Arovella’s position in the biotechnology industry and offering new treatment options for patients.

Arovella Therapeutics Secures Positive FDA Feedback for ALA-101 IND Filing
Oct 27, 2025

Arovella Therapeutics Ltd announced a positive outcome from a Type D meeting with the US FDA regarding reagent testing requirements for its CAR-iNKT manufacturing process. This feedback enables the company to confidently proceed with filing its IND application for ALA-101, a next-generation ‘off-the-shelf’ CAR-iNKT cell therapy, by the end of the current year, with plans to advance into clinical trials in early 2026.

Arovella Therapeutics Showcases iNKT Cell Therapy at AusBiotech Invest 2025
Oct 20, 2025

Arovella Therapeutics Ltd announced that its CEO, Dr. Michael Baker, will present at the AusBiotech Invest 2025 conference, showcasing their iNKT cell therapy platform. This platform offers significant advantages over existing T-cell therapies and has potential applications in treating both blood cancers and solid tumors, highlighting Arovella’s innovative approach in the biotechnology industry.

Arovella Therapeutics Director Adjusts Shareholdings
Oct 15, 2025

Arovella Therapeutics Limited announced a change in the director’s interest, with Michael Baker exercising options to acquire 1,617,021 ordinary shares while disposing of 6,382,979 unlisted options. This transaction, executed via a cashless exercise facility, reflects a strategic adjustment in the director’s holdings, potentially impacting the company’s stock dynamics and signaling confidence in its future prospects.

Arovella Therapeutics Issues New Shares to Bolster Market Position
Oct 15, 2025

Arovella Therapeutics Limited announced the issuance of 1,617,021 ordinary shares without disclosure under Part 6D.2 of the Corporations Act. This move indicates the company’s compliance with relevant legal provisions and suggests a strategic step in securing capital, potentially impacting its market positioning and stakeholder interests.

Arovella Therapeutics Announces Cessation of Securities
Oct 15, 2025

Arovella Therapeutics Limited announced the cessation of 6,382,979 securities due to the expiry of options or other convertible securities without exercise or conversion. This development indicates a potential shift in the company’s capital structure, which may impact its financial strategy and stakeholder interests.

Arovella Therapeutics Expands ASX Quotation with New Securities
Oct 15, 2025

Arovella Therapeutics Limited has announced the quotation of 1,617,021 ordinary fully paid securities on the Australian Securities Exchange (ASX). This move is part of the company’s strategic efforts to enhance its capital structure and support its ongoing development projects, potentially strengthening its position in the biotechnology sector.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Dec 30, 2025